The purpose of the EMCA is to harmonise the company law at the EU level that allows creating common companies acts all over the EU. Such a model law is very useful for countries that want to attract foreign investors and create favourable conditions for business and remove unnecessary restrictions and reduce administrative burdens.
It is expected that the EMCA will not only harmonize the EU company law but will also modernize it. It is a new so-called “soft law” instrument. The EMCA developers believe that the EMCA will acquire the same success as the US Model Business Corporation Act (RMBCA), which was moved into legislation of almost all the US states. The EMCA proposals will be beneficial for Lithuania, as well, and will help to modernise the existing Law on Companies.
Among the EMCA proposals are shares without a nominal value, recognition of group interests, simplified company registration and so on. The Member States will be able to decide on the extent they want to take the recommendations proposed by the model act into account and how much of it they want to transfer into national legislation.
Since 2007 an international group of company law experts from each EU Member State has been working on the EMCA which is designed as a free-standing general corporation statute that can be used as a model by national or European legislation, as well as for academic education. Gintautas Bartkus, a lecturer at the Faculty of Law of Vilnius University and a Partner of the Firm, represents Lithuania in this working party.